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Twilio (TWLO) to Post Q3 Earnings: Key Factors to Consider
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Twilio Inc. (TWLO - Free Report) is scheduled to report its third-quarter 2022 results on Nov 3.
In the third quarter of 2022, Twilio anticipates revenues in the range of $965-$975 million. The Zacks Consensus Estimate for the same is pegged at $969.2 million, indicating an improvement of 30.9% from the year-ago quarter. Our estimate projects Twilio’s revenues to be $970.2 million.
The cloud-based communications platform-as-a-service provider expects a non-GAAP loss between 37 cents and 43 cents per share. The consensus mark for the non-GAAP loss stands at 39 cents per share, suggesting a drastic fall from the year-ago quarter’s earnings of a penny. We expect Twilio to report a loss of 38 cents per share in the third quarter of 2022.
Twilio’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 64.1%.
Twilio’s third-quarter results are likely to reflect gains from accelerated digital transformation projects across several industries amid the ongoing pandemic. Organizations have been reconfiguring their setup for a hybrid operational environment.
The company’s revenues are likely to have witnessed contributions from its latest buyouts, including Zipwhip and Segment. Since the buyout in 2020, Segment has been aiding TWLO in enhancing its capabilities in the cloud-based communications platform space and gaining significant customers. The strong uptake of Segment, the growing adoption of Twilio Flex and an increasing clientele base are likely to have favored the third-quarter performance.
Solutions like Journeys, Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface are likely to have contributed to the third-quarter performance. The company’s efforts to fortify its global footprint are likely to get reflected in the to-be-reported quarter's results.
In the last reported quarter, Twilio added around 7,000 new clients, taking the total active customer count to more than 275,000. In the third quarter, the company’s increasing scope among leading enterprises is likely to have acted as a key tailwind.
However, increased spending, investments in enhancing the product portfolio and expansion across newer markets are likely to have negatively impacted Twilio’s profitability. Also, elevated expenses for enhancing sales capabilities are likely to have weighed on the third quarter’s bottom line.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Twilio this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
TWLO currently has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Pyxis Tankers (PXS - Free Report) , Helmerich & Payne (HP - Free Report) and Copa Holdings (CPA - Free Report) are some stocks that investors can consider, as these have the right combination of elements to post an earnings beat in their upcoming releases.
Pyxis has an Earnings ESP of +12.82% and sports a Zacks Rank #1. The company is anticipated to report its third-quarter 2022 results on Nov 21. Pyxis’ earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the negative average surprise being 30.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PXS’s third-quarter earnings is pegged at 39 cents per share, indicating a 197.5% surge from the year-ago quarter’s loss of 40 cents per share. The consensus mark for revenues stands at $16.4 million, suggesting a year-over-year increase of 134%.
Helmerich & Payne has an Earnings ESP of +14.32% and currently sports a Zacks Rank #1. The company is slated to report its fourth-quarter fiscal 2022 results on Nov 16. Helmerich & Payne’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters and missed once, the average surprise being 118.2%.
The Zacks Consensus Estimate for HP’s fiscal fourth-quarter earnings stands at 43 cents per share, implying a year-over-year increase of 169.4%. Helmerich is estimated to report revenues of $591.4 million, which suggests a surge of 72% from the year-ago quarter.
Copa Holdings has an Earnings ESP of +0.26% and carries a Zacks Rank #2 at present. The company is slated to report its third-quarter 2022 results on Nov 16. CPA’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 174.2%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $2.63 per share, suggesting a year-over-year increase of 275.7%. Copa’s quarterly revenues are estimated to increase 83.4% year over year to $816.2 billion.
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Twilio (TWLO) to Post Q3 Earnings: Key Factors to Consider
Twilio Inc. (TWLO - Free Report) is scheduled to report its third-quarter 2022 results on Nov 3.
In the third quarter of 2022, Twilio anticipates revenues in the range of $965-$975 million. The Zacks Consensus Estimate for the same is pegged at $969.2 million, indicating an improvement of 30.9% from the year-ago quarter. Our estimate projects Twilio’s revenues to be $970.2 million.
The cloud-based communications platform-as-a-service provider expects a non-GAAP loss between 37 cents and 43 cents per share. The consensus mark for the non-GAAP loss stands at 39 cents per share, suggesting a drastic fall from the year-ago quarter’s earnings of a penny. We expect Twilio to report a loss of 38 cents per share in the third quarter of 2022.
Twilio’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 64.1%.
Twilio Inc. Price and EPS Surprise
Twilio Inc. price-eps-surprise | Twilio Inc. Quote
Factors to Note
Twilio’s third-quarter results are likely to reflect gains from accelerated digital transformation projects across several industries amid the ongoing pandemic. Organizations have been reconfiguring their setup for a hybrid operational environment.
The company’s revenues are likely to have witnessed contributions from its latest buyouts, including Zipwhip and Segment. Since the buyout in 2020, Segment has been aiding TWLO in enhancing its capabilities in the cloud-based communications platform space and gaining significant customers. The strong uptake of Segment, the growing adoption of Twilio Flex and an increasing clientele base are likely to have favored the third-quarter performance.
Solutions like Journeys, Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface are likely to have contributed to the third-quarter performance. The company’s efforts to fortify its global footprint are likely to get reflected in the to-be-reported quarter's results.
In the last reported quarter, Twilio added around 7,000 new clients, taking the total active customer count to more than 275,000. In the third quarter, the company’s increasing scope among leading enterprises is likely to have acted as a key tailwind.
However, increased spending, investments in enhancing the product portfolio and expansion across newer markets are likely to have negatively impacted Twilio’s profitability. Also, elevated expenses for enhancing sales capabilities are likely to have weighed on the third quarter’s bottom line.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Twilio this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
TWLO currently has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Pyxis Tankers (PXS - Free Report) , Helmerich & Payne (HP - Free Report) and Copa Holdings (CPA - Free Report) are some stocks that investors can consider, as these have the right combination of elements to post an earnings beat in their upcoming releases.
Pyxis has an Earnings ESP of +12.82% and sports a Zacks Rank #1. The company is anticipated to report its third-quarter 2022 results on Nov 21. Pyxis’ earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the negative average surprise being 30.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PXS’s third-quarter earnings is pegged at 39 cents per share, indicating a 197.5% surge from the year-ago quarter’s loss of 40 cents per share. The consensus mark for revenues stands at $16.4 million, suggesting a year-over-year increase of 134%.
Helmerich & Payne has an Earnings ESP of +14.32% and currently sports a Zacks Rank #1. The company is slated to report its fourth-quarter fiscal 2022 results on Nov 16. Helmerich & Payne’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters and missed once, the average surprise being 118.2%.
The Zacks Consensus Estimate for HP’s fiscal fourth-quarter earnings stands at 43 cents per share, implying a year-over-year increase of 169.4%. Helmerich is estimated to report revenues of $591.4 million, which suggests a surge of 72% from the year-ago quarter.
Copa Holdings has an Earnings ESP of +0.26% and carries a Zacks Rank #2 at present. The company is slated to report its third-quarter 2022 results on Nov 16. CPA’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 174.2%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $2.63 per share, suggesting a year-over-year increase of 275.7%. Copa’s quarterly revenues are estimated to increase 83.4% year over year to $816.2 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.